On February 3, the Consumer Financial Protection Bureau announced that it is taking steps to help consumers get better access to checking accounts. The CFPB has “concerns that consumers are being sidelined by the lack of account options and by inaccurate information used to screen potential customers.” Towards that end, the CFPB sent
FTC Settles Charges Involving Credit Card Laundering Scheme Participants
On December 22, the Federal Trade Commission announced a settlement of a pending lawsuit brought under the Telemarketing Sales Rule against participants in an alleged credit card “laundering” scheme. According to the FTC’s complaint, PayBasics, Todd Hatch, and Jimmy Shin took an active role in helping the defendants behind the Tax Club fraud to open
CFPB Alerts Colleges to Surprise Fees in Campus Credit Card Contracts
On December 16, the Consumer Financial Protection Bureau sent warning letters to 17 colleges directing them to improve disclosure of school-sponsored credit card agreements, based on deficiencies identified in a recent agency investigation. According to the CFPB, more than 10 million college students attend a school that has made a deal with a financial institution
CFPB Releases Second CARD Act Report
On December 3, the Consumer Financial Protection Bureau released its updated report on the impact of the Credit Card Accountability Responsibility and Disclosure Act (“CARD Act”) since its inception. According to the CFPB, the CARD Act has helped reduce the cost of credit card fees by eliminating certain back-end pricing practices. The CFPB also found
CFPB Releases Data on Credit Card Complaints
The Consumer Financial Protection Bureau’s latest monthly report revealed that credit card complaints represent approximately 11% of total product complaints from consumers. Late fees and credit report problems due to confusing payment processing schedules are the most frequent complaint topics for consumers. Other problems identified by consumers include:
- Billing issues related to surprise late fees
Tennessee AG Settles Investigation of Credit Card Payment Processor
On November 11, Tennessee Attorney General Herbert H. Slatery III and the Tennessee Division of Consumer Affairs announced that it had settled allegations against credit card payment processor Elavon, Inc. to resolve claims that it violated state consumer protection laws by misrepresenting the cancellation policy of its credit card processing equipment leases, the duration
OCC Releases Updated Booklet on Credit Card Lending
On November 4, the Office of the Comptroller of the Currency (“OCC”) released its “Credit Card Lending” booklet of the Comptroller’s Handbook, replacing the outdated booklet issued in October 1996. A copy can be found here.
The Comptroller’s Handbook is intended as a summary restatement of existing laws, regulations, and policies. The “Credit
ABA Letter Attacks CFPB Plan for Overdraft Survey
On October 30, the American Bankers Association (“ABA”) filed a letter opposing the Consumer Financial Protection Bureau’s plan, under the Paperwork Reduction Act, to conduct a nationwide web-based survey of 8,000 individuals as part of the Bureau’s study of overdraft protection services. The ABA urged the CFPB to re-submit its proposed plan with a draft
CFPB Plans to Pave the Way for Yet More Class Actions Against Financial Services Companies
According to remarks made by Consumer Financial Protection Bureau (“CFPB”) Director Richard Cordray on October 7, 2015 (and a subsequent press release), the CFPB is planning to issue regulations that would prohibit many financial services companies from requiring consumers to waive their right to bring a class action lawsuit via a pre-dispute arbitration agreement
CFPB to Host Community Bank Advisory Counsel Meeting
The CFPB will hold a Community Bank Advisory Counsel meeting with Richard Cordray on Wednesday, September 30, from 3:00–4:00 p.m. The meeting will be held in the Second Floor Auditorium of the Bureau’s offices, located at 1275 First Street, N.E., Washington, D.C. 20002.
The topics to be discussed with the Director include